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Contracts shall contain information about the scope and costs of services to be rendered <br />and the number of persons to be served. The Grantee shall draft service contracts <br />according to CJPP guidelines for proposed contracts, and the Grantee shall have the <br />responsibility for securing from CJPP such guidelines before entering into contracts for <br />services. <br />A copy of the proposed contract must be submitted for consideration during the <br />NCDOCCJPP review of the Grantee's plan or application. No funds may be <br />expended for contract agreements until such contracts are received and approved as <br />a part of the grant application process. <br />E. Insurance and Indemnification: Grant funds may not be committed for insurance or <br />indemnification expenses unless the Grantee's plan and application demonstrate that a) <br />types and extent and cost of coverage will be in accordance with local government policy <br />and sound business practice and b) costs will not be charged for contributions to a reserve <br />for a self - insurance program. Grant funds may not be requested by the Grantee if any <br />expenditures are to be made for insurance or indemnification costs for which the above <br />certification cannot be made unless complete details and justification have been submitted <br />to the NCDOCCJPP and prior approval has been granted. <br />F. Rent and /or Lease of Space or Equipment: All leases entered into for purposes of a <br />funded project.shall be made at the lowest reasonable prices. The Grantee may use its <br />normal leasing procedures and space requirements for employees. The rental charge must <br />be consistent with prevailing rates in the area. The Grantor shall not be obligated for <br />any rent or lease agreement beyond the grant period. <br />Any leaseholder improvements to be made by the Grantee must be included in the <br />approved grant budget. The Grantee must secure written documentation of the extent to <br />which the Grantee will be compensated for such leaseholder improvements by the lessor <br />(reduction in the charge for rent, etc.). <br />G. Travel, Lodging and Subsistence: Expenditures and allowable cost value for travel, <br />lodging and subsistence shall not exceed the normal and usual amount allowable by the <br />Grantee for such costs under rules and policies applicable to Grantee's official business. <br />In the event that Grantee has no established rule, regulation, or policy regarding such <br />expenses, the maximum payment and allowable cost will be the current prevailing rates <br />allowed for North Carolina state employees. Any deviation from the aforementioned <br />expense allowances must be approved by the Grantor in writing before being incurred. <br />Prior approval by the NCDOCCJPP is required for all out -of -state travel to be paid <br />with grant funds, except for any such trips specified in the approved plan and <br />application. <br />H. Equipment and Other Capital Expenditures: The Grantee hereby certifies that a) no <br />other equipment owned by the Grantee is available for the project; b) grant funds will not <br />be used to provide reimbursement for the purchase price of equipment owned by the <br />Page 9- - -July 1, 1998 to June 30, 1999 <br />